Under a Debt Management Plan, individuals will:
- Have a lower payment
- Resolve debt
- Simplify debt with one payment per month
- Build strong money management skills
Personal Credit Counselor
Customized Payment Plan
Once the payment schedule is set, the counselor will talk to creditors and persuade them to reduce interest rates and waive late fees to shorten the length of time an individual may be in debt. The counselor may also be able to convince creditors to “re-age” the account (report past due amounts as current).
No Credit Cards
Individuals enrolled in our DMP program are required to give up all credit cards and refrain from obtaining any other credit while enrolled in the program. The goal is to stop adding debt – once the DMP is complete, the individual will be debt-free except for a mortgage or car loan.
Once in repayment, our credit counselors will help each individual set up an acceptable budget. This helps clients track their spending habits and become more aware of unnecessary expenses and impulse buys. The counselors check in with clients for several months to see how well they’re following their spending plan.
Progress Reports & Follow-up Sessions
Each client’s personal credit counselor will be available throughout the duration of the program and will contact them regularly to discuss progress, review financial goals, and help make budget adjustments. These ongoing follow-up sessions will be a measure of each person’s progress throughout the duration of the Debt Management Program and give them the knowledge and confidence to stay on top of their debt.
Upon the successful completion of a debt management program, the original debt will be successfully paid off and the strategies developed during the debt management program will lead each individual toward continued financial success.